NEW YORK, July 12, 2010 – According to a recent survey from American Express, nine out of every 10 Americans (89%) have a savings goal, and most have a plan to reach that goal.

On average, the general consumer intends to accumulate $14,000, an ambitious goal, given that it accounts for approximately 22% of the average respondent’s household income.

The American Express Spending & Saving Tracker, monthly series, reports about consumers' views about the economy, their financial goals and intentions, and overall spending and saving trends.  The January 2010 report, which this article summarizes, included a research sample of 2,088 adults from the general U.S. population(1), as well as two subgroups — the affluent(2) and young professionals(3).

The AmEx study found that not only are consumers setting specific goals, the vast majority (83%) have a defined strategy to help them reach that goal. On average, the general population would like to save $14,000 or about $1,200 per month. Affluents and young professionals have equally impressive goals for the year, reporting that they plan to save on average $25,000, and $12,000 respectively.

Hitting the lottery does figure into the savings plans of 23% of Americans.  The AmEx study also found:

• Primary income provides the means for achieving their financial goals for more than half (54%) of the general population, 59% of affluents and 68% of young professionals.

• Cutting back on small luxuries is an element of the savings plans for 30% of the general population and 42% of young professionals will rein in extras such as "morning lattes and manicures."

• Tax returns will play an especially important role in young professionals meeting their savings goal, with 45% expecting it to contribute to savings, compared to 25% of both the general population and affluents.

• Another 19% will sell items on websites or in classifieds; 15% will take on a second job and six% plan to stash a portion of a bonus. Of the young professionals, 28% plan to leverage their bonus to build their savings.

“This year, consumers are focused on finding the right balance between saving and spending by continuing to make smart trade-offs,” said Pamela Codispoti, American Express senior vice president and general manager, Cardmember Services. “For some people we found that means eating out less but buying quality products at the grocery store so it doesn't feel like a sacrifice. Regardless of the trade-offs they are making, most people seem to be thinking about how they can be better stewards of their money.”

Other strategies that consumers plan to pursue include:

• Managing and budgeting finances (51%)

• Significantly reduce or wipe out their debt (21%)

• Buy only what they can afford (16%)

• Stick to a monthly budget (14%)

• Pursue financial goals of higher paying jobs (12%)

• Buy or sell real estate (3%)

Young professionals (29%) say they want to significantly reduce or wipe out their debt, yet only six% had a goal of only buying what they could afford.

Travel tops the list of pursuits consumers rank most valuable to their livelihood and well-being with 72%, ahead of home entertaining with friends or family (66%), and dining out (60%).  Also:

• Among the general population 31% planed to take a vacation during the first three months of the year, compared to 51% of affluents and 54% of young professionals (54%).

• Two in five (42%) young professionals planed to take weekend trips, while almost one-fourth (23%) of affluents intend to take week-long trips.

• Among all those scheduling a winter vacation, an average of two trips is planned.

• More than four in five (84%) of the general population will limit their journeys to the United States during the first three months of the year.

 “Given how important travel is to consumers, it’s no surprise that they plan to find ways to get away this winter,” says Codispoti. “The combination of travel deals and discounts and the ability to use rewards points to offset the cost of trips is allowing consumers to both reign in spending and continue to travel.”

American Express Spending & Saving Tracker research was completed online among a random sample of consumers aged 18+. The research sample of 2,088 adults surveyed the general U.S. population, as well as two sub-groups — the affluent and young professionals. Interviewing was conducted by Echo Research between January 5 and January 11, 2010. Overall, the results have a margin of error of +/- 2.2 (or +/- 4.2 among affluent and +/- 4.3 among young professionals) percentage points at the 95% level of confidence. For access to previous American Express Spending & Saving Tracker results, please visit www.americanexpress.com/aboutus.
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American Express Company (www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.

(1)The research was conducted online January 5 –11, 2010 among a random sample of 2,088 adults aged 18 and older.
(2) Affluent - defined as having a minimum annual household income of $100,000.
(3) Young Professional - defined as less than 30 years of age, having a college degree, and a minimum annual household income of $50,000.